Cheltenham & Gloucester wont allow me to move to interest only!!!!!!!!!

Bargin_Girl

:mad: Hi, Just wondering if any one else has tried to move their mortgage to interest only with C&G. My fixed rate BTL expires at the end of November and i want to move overto SVR of 5% because seems a better deal than any fixed rate at present. I enquired in Sept/Oct about moving to interest only and was told no problem but would be fee of 70 pounds. I call today as two weeks before fixed rate expires and was told that they are no longer letting customers move to a interest only.

It seems to me they want people to default on their mortgage. I only want to do this for 3/4 months, while on maternity leave.

Do anyone know if they can do this. I did try to talk to them but was given another number to call and it was there collect team at Lloyds who stated they could not help as i had not defaulted. Great help.

fluffyb

That sounds terrible to me

We are doing the same ourselves - but we are with Nat West - and have signed the forms, sent them off and had the letter back to say it takes effect from our next payment. We had no trouble at all doing it and it saves us a whopping £900 a month :eek: until we can go back to repayment.

I hope someone more knowledgeable can advise you, but in our experience we did not have any problem at all.

Good luck!!

maninthestreet

A lender is under no obligation to agree to your request to change the mortgage to interest only. Were they aware you only wanted to do this for 3 to 4 months?

payless

policy change 28/10

·Existing customers with their lending on a repayment basis can no longer switch their payment method to interest only.


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you sayn its B2L property - is it self funding

Bargin_Girl

Not sure what you mean by self funding. The rent covers the mortgage. I did mention it was only for a short period but they did not seem to care as his piece of paper stated you could not change to an interest only.

To me it seems that they want you to be repossed!!!!!!!!

koexelek

I thought C & G would still let people go to interest only if loan to value was less than 75%

luckyfool

koexelek wrote: »

I thought C & G would still let people go to interest only if loan to value was less than 75%

That is the case for new mortgage applications. It appears for existing mortgages they will not allow the switch at all except in exceptional circumstances.

brit1234

I think it is simply that they want to get buy to let investors off their books due to the raised risk in this sector. The banks are going to take a masive hit as the buy to let sector rapidly goes tits up and prices crash. If Lloyds can move as many off the books as possible to other banks it makes their fiances that much stronger to ride out the storm.

By the way what is your LTV?

payless

the policy change is not aimed just at b2l

Gorgeous_George

This has nothing whatsoever to do with BTL. Brit1234 likes to think that BTL doesn't work and I would not wish to shatter her illusions.

Regardless, it sounds like the OP did not have a business plan and knows little about running a business - however small. She does not seem to have a fighting fund for emergencies. Maternity leave can usually be planned some months ahead - it shouldn't be a surprise.

Maybe the OP could extend the term of the repayment mortgage to lower the monthly payments.

GG

maninthestreet

Bargin_Girl wrote: »

Not sure what you mean by self funding. The rent covers the mortgage. I did mention it was only for a short period but they did not seem to care as his piece of paper stated you could not change to an interest only.

To me it seems that they want you to be repossed!!!!!!!!

If the rent covers the mortgage, why do want to switch to interest only? How can your pregnancy have any impact on whether the rent will or will not cover the mortgage?